Krafton CEO Discusses Hi-Fi Rush Purchase Centered on Creative Advancement Rather Than Profit
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### Krafton CEO Changhan ‘CH’ Kim Talks About the Tango Gameworks Purchase: Emphasizing Creativity Over Profit

In a recent chat with *Game Developer*, Krafton CEO Changhan ‘CH’ Kim elaborated on his firm’s choice to acquire Tango Gameworks, a studio recognized for its inventive yet commercially modest games like *Hi-Fi Rush*. This acquisition occurs during a period when the gaming sector is undergoing widespread layoffs and financial restructuring, with numerous companies favoring shareholder dividends over employee retention and innovation. Nonetheless, Krafton’s strategy starkly contrasts this trend, as Kim highlighted that the acquisition aimed to uphold Tango Gameworks’ creative heritage instead of pursuing immediate profits.

### Emphasis on Creativity, Not Financial Gain

Previously under Microsoft’s umbrella, Tango Gameworks was facing the danger of closure amidst a wider wave of layoffs in 2024. Despite the studio’s absence of blockbuster commercial achievements, particularly with *Hi-Fi Rush*, Kim recognized significant worth in the creativity and innovation that Tango offered. In the interview, Kim remarked, “Although they did not have a monumental success in their games, we identified many creatives worth pursuing. That’s the reason we sought to collaborate with that organization.”

This viewpoint represents a notable shift from the industry’s current obsession with financial outcomes. Kim acknowledged that a sequel to *Hi-Fi Rush* might not result in a fiscal windfall, but he reiterated that the studio’s creative capabilities outweighed short-term profitability. “Tango Gameworks are imaginative. They aspire to explore new avenues, and we want to support that initiative,” Kim articulated, emphasizing Krafton’s dedication to nurturing innovation rather than merely prioritizing profit.

### Saving Tango Gameworks from Imminent Closure

Kim also disclosed that Krafton acted promptly to acquire Tango Gameworks to avert further disruption for the studio’s staff. With Microsoft’s impending layoffs, the acquisition served as a lifeline for the team. “We had to execute the purchase as efficiently as possible to ease employee concerns and prevent further gaps in their employment records,” Kim affirmed. This action highlights Krafton’s commitment to not only maintaining the studio’s creative output but also securing job stability for its staff during a tumultuous period in the industry.

### A Departure from Industry Standards

The gaming sector has witnessed numerous layoffs in 2024, with significant corporations like Microsoft reducing hundreds of positions in what they term “restructuring measures.” These layoffs frequently accompany increased distributions to shareholders, a pattern that has faced backlash from both industry insiders and fans. Conversely, Krafton’s acquisition of Tango Gameworks is a clear departure from this standard. Instead of fixating on maximizing shareholder value, Krafton is investing in the enduring creative potential of its studios.

This strategy is particularly remarkable given the financial pressures that many gaming firms contend with. As Kim openly admitted, *Hi-Fi Rush* may not have been a monetary triumph, and a sequel is unlikely to yield considerable profits. Yet, Krafton is prepared to take that risk to cultivate the creative essence that Tango Gameworks represents. “*Hi-Fi Rush* might have generated a slight deficit regarding finances, but it’s a team that should be encouraged to innovate and continue their path,” Kim noted.

### Cultivating a Legacy of Innovation

Kim’s vision for Krafton goes beyond just Tango Gameworks. He expressed a desire to acquire additional studios that emphasize creativity and innovation, regardless of whether their games achieve significant commercial success. “We aim to incorporate more teams like that under our banner,” Kim stated, indicating that Krafton is dedicated to cultivating a portfolio of studios that push the limits of game development.

This ideology corresponds with Krafton’s broader strategy of promoting a diverse array of creative perspectives within the gaming landscape. By acquiring studios such as Tango Gameworks, Krafton is establishing itself as a proponent of innovation in an industry that is increasingly dictated by financial metrics and shareholder expectations.

### A Daring Move in a Strained Industry

Krafton’s acquisition of Tango Gameworks is a daring step, especially in an industry where financial success frequently dictates the survival of studios. By prioritizing creativity over monetary gain, Krafton is adopting a long-term perspective regarding its investment in Tango Gameworks, betting that the studio’s innovative drive will yield rewards that transcend immediate financial returns.

In an industry that has experienced countless layoffs and closures, Krafton’s decision to rescue Tango Gameworks and safeguard its creative heritage represents a refreshing shift. As Kim articulated, “We aspire to do more of that”—a sentiment that could herald a new path for the gaming industry, where creativity and innovation are esteemed as highly, if not more so, than financial performance.

### Conclusion

Krafton’s acquisition of Tango Gameworks

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